Wheat Lower as Export Prices Drop -- Daily Grain Highlights
By Kirk Maltais
--Wheat for March delivery fell 2.1% to $7.80 1/4 a bushel, on
the Chicago Board of Trade Monday, with traders selling as data
points to lower prices for wheat exports globally.
--Corn for March delivery fell 0.1% to $6.71 a bushel.
--Soybeans for January delivery rose 1.4% to $14.56 1/2 a
Question of Supply: Wheat futures led the grain complex lower on
indications that supply on the export market appears ample, despite
Russia slowing shipments of Ukrainian grains leaving their ports.
Prices paid for wheat imports in Egypt have fallen to pre-war
levels, and places like the U.S. also have ample supplies, said
John Payne of Hedgepoint Global. "We have plenty of wheat around in
this country over the near term, I think it's more of a storage
issue at this point," Mr. Payne told the WSJ.
Protest Punch: Protests in China over the government's
zero-tolerance approach to Covid-19 were pressuring markets across
the board, adding fuel to concerns about Covid-19 impacting demand
for goods in China. "The restrictions are strongly impacting the
country's economic activity," AgriTel said in a note.
Breaking the Mold: Strength seen in crude oil prices provided
support for CBOT soybean futures, as well as soymeal and soyoil.
"The rebound in energies and light concern over South American
weather is providing support," Rich Nelson of Allendale Inc. told
the WSJ. Crude oil is up 1.2% Monday afternoon. However, Mr. Nelson
adds, other factors are in place that may quickly shift market
sentiments. "Many are still wary about this strength though as the
China news, Argentina's soy-dollar program and other factors remain
in place," he said.
Swayed by Inflation: The debate over 'Food vs. Fuel'--whether to
allocate more crop production to produce either food products or
renewable fuels--favors food for agricultural producers, said
Capital Economics in a note. "The impending global recession will
weigh on energy demand, helping to keep a lid on prices over the
next year," said the firm. "What's more, the U.S.--by far the
world's largest biofuel producer--is much less exposed to the
current energy crisis than it was to the previous crisis." The firm
also adds that U.S. focus for cutting automotive carbon emissions
appears to be on implementing electric vehicles, instead of using
Inspections Inch Back: Export inspections for U.S. grains are
lower than last week's, with China continuing to be the leading
destination for soybean shipments. In its latest grain export
inspections report, the USDA said that export inspections of
soybeans totaled 2.02 million metric tons for the week ended Nov.
24, down from 2.43 million tons reported last week. Meanwhile, corn
inspections totaled 302,350 tons and wheat inspections totaled
198,519 tons, both down from last week's report. China was again
the leading destination for U.S. soybeans, receiving roughly 1.5
million tons of soybeans. Mexico and Ethiopia were the leading
destinations for U.S. wheat, and Mexico was the leading destination
for U.S. corn.
--Hormel Foods Corp. will release its Q4 earnings report before
the stock market opens on Wednesday.
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
--The USDA will release its monthly agricultural prices report
at 3 p.m. ET Wednesday.
Write to Kirk Maltais at email@example.com
(END) Dow Jones Newswires
November 28, 2022 15:06 ET (20:06 GMT)
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